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In our continued efforts to give our readers a broad number of views, opinions and information, we continue to provide PSG's daily market updates and add our own daily inputs in at the end.
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Short summary of PSG's market commentary for 5 December 2019
South Africa
The JSE closed higher on Wednesday while global markets were mixed as investors monitored the latest developments in the US-China trade war. The All Share gained 0.99%.
United States
Wall Street opened higher on Wednesday after Bloomberg reported US President Donald Trump saying that trade talks with China were going ”very well”, changing market sentiment from the previous session when he said that a deal might only happen next year. The Dow Jones was up 0.57%.
Europe
European stocks closed in the green on Wednesday, after upbeat services PMI data in the Eurozone and China and amid hopes that Washington and Beijing would be able to resolve their prolonged trade dispute. The DAX 30 closed up 1.16%.
Hong Kong
Hong Kong markets closed lower on Wednesday, after Trump’s remarks and renewed Sino-US tensions. The Hang Seng Index fell 1.25%.
Japan
Japanese shares tumbled on Wednesday as comments from Trump and a US House bill targeting camps for Muslims in Xinjiang reignited fears a trade deal between Washington and Beijing may not come through. The Nikkei 225 Index skidded 1.05%.
Rand
The rand was fairly firm on Wednesday, strengthening to a best level of R14.53/$ in intraday trade. At 17h20, it had firmed 0.29% to R14.59/$.
Precious metals
Gold steadied on Wednesday, as investors awaited clarity on the US-China trade talks, while palladium soared to another all-time high on scarce supply. At 19h30, an ounce of palladium traded at $1 849.
Oil
Oil prices extended gains on Wednesday after EIA data showed a much larger-than-expected decline in US crude inventories. A barrel of Brent crude traded at $63.94 at 19h30.
The JSE closed higher on Wednesday while global markets were mixed as investors monitored the latest developments in the US-China trade war. The All Share gained 0.99%.
United States
Wall Street opened higher on Wednesday after Bloomberg reported US President Donald Trump saying that trade talks with China were going ”very well”, changing market sentiment from the previous session when he said that a deal might only happen next year. The Dow Jones was up 0.57%.
Europe
European stocks closed in the green on Wednesday, after upbeat services PMI data in the Eurozone and China and amid hopes that Washington and Beijing would be able to resolve their prolonged trade dispute. The DAX 30 closed up 1.16%.
Hong Kong
Hong Kong markets closed lower on Wednesday, after Trump’s remarks and renewed Sino-US tensions. The Hang Seng Index fell 1.25%.
Japan
Japanese shares tumbled on Wednesday as comments from Trump and a US House bill targeting camps for Muslims in Xinjiang reignited fears a trade deal between Washington and Beijing may not come through. The Nikkei 225 Index skidded 1.05%.
Rand
The rand was fairly firm on Wednesday, strengthening to a best level of R14.53/$ in intraday trade. At 17h20, it had firmed 0.29% to R14.59/$.
Precious metals
Gold steadied on Wednesday, as investors awaited clarity on the US-China trade talks, while palladium soared to another all-time high on scarce supply. At 19h30, an ounce of palladium traded at $1 849.
Oil
Oil prices extended gains on Wednesday after EIA data showed a much larger-than-expected decline in US crude inventories. A barrel of Brent crude traded at $63.94 at 19h30.
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Our daily update
The extract below covers the latest economic growth numbers for South Africa for the 3rd quarter of 2019 which showed that South Africa's economy contracted by -0.6% quarter on quarter annualised.
The quarter on quarter annualised growth rates (fancy speak for assuming growth in the industry from Q3:2019 over Q2:2019 continued for a full year) for the various sectors of South Africa is summarised below:
South Africa's economy is like a hamster on a spinning wheel. Its going absolutely nowhere. And this has been the case for years. While other countries are growing and advancing South Africa is stagnating.
Read more about South Africa's GDP here
The quarter on quarter annualised growth rates (fancy speak for assuming growth in the industry from Q3:2019 over Q2:2019 continued for a full year) for the various sectors of South Africa is summarised below:
- Agriculture/forestry and fishing: -3.6%
- Mining: -6.1%
- Manufacturing: -3.9%
- Electricity/water and gas supply: -4.9%
- Construction: -2.7%
- Trade (wholesale, retail and motor trade): 2.6%
- Transport: -5.4%
- Finance, Real Estate and business services: 1.6%
- Government: 2.4%
- Personal services: 0.4%
- Actual GDP for Q3:2019: -0.6%
South Africa's economy is like a hamster on a spinning wheel. Its going absolutely nowhere. And this has been the case for years. While other countries are growing and advancing South Africa is stagnating.
Read more about South Africa's GDP here
Our JSE All Share index daily performance calendar
Visit our JSE Calendar tracker page for a expanded version of the calendar below
The graphic below provides the daily returns of the JSE All Share Index (J203) on a calendar chart. Provides a great overview of the All share index over the course of the month. It will be updated daily with our daily investment update as received from PSG.
So the month of November so the JSE All Share index end -1.75% in the red, and so far for December 2019 things are not looking good. The first three trading days of the last month of 2019 saw the JSE All Share index lose -0.56%.
For more on daily market movements see our 2019 Calendar tracker.
But we as South African investors are losing out in Dollar terms. Largely due to continued Rand weakness not only over the short term but over the last couple of years. We continue to advise investors to take money out of South Africa and invest it offshore. Looking for ideas for investments to make? Go read this article
For more on daily market movements see our 2019 Calendar tracker.
But we as South African investors are losing out in Dollar terms. Largely due to continued Rand weakness not only over the short term but over the last couple of years. We continue to advise investors to take money out of South Africa and invest it offshore. Looking for ideas for investments to make? Go read this article